2010 Annual Report-USD 6.31 Billion in Approvals in 2010
Credit approvals made by the African Development Bank Group during 2010 totalled UA4.1 billion (USD 6.31 billion) - a marked decline compared to the record level of UA8.6 billion for the previous year, but a sign of return to normality after the global financial crisis. That said, transactions in 2010 were still 16.1% higher than in 2008.
Funding from the three parts of the Group was as follows:
AfricanDevelopment Bank UA 2.58 billion (63%), including UA1.21 billion for private sector operations, African Development Fund UA1.46 billion (35.5%) and Nigeria Trust Fund UA29.5 million (0.7%).
Special funds (resources of the African Water Facility, the Initiative for water supply and sanitation in rural areas and the Global Environment Facility) accounted for UA32.4 million (0.8%).
The sector breakdown of approvals reflects the Bank's adherence to its policies of selectivity and prioritization by effectiveness. It also reflects the growing demand for infrastructure support in RMCs.
In accordance with the Bank’s Medium-Term Strategy (MTS) infrastructure took prime position, with an allocation of UA 2.6 billion (70.9%), followed by finance (mainly private sector operations) with UA 319.9 million (8.7%) and multi-sector (support for governance, public sector management, etc..) obtaining UA 301.2 million (8.2%) . These three sectors combined accounted for 87.8% of loans and operational grants.
The importance given to infrastructure is indicative of the will of the Bank to prioritize big impact projects designed to create an enabling framework for private sector investment, increase competitiveness in the RMCs, and create jobs and further sustainable economic growth.
Loan approvals and grants from the Bank Group for the five sub-regions (including multinational operations) amounted to UA 3.67 billion (compared with UA 7.51 billion in 2009).
This breaks down:
North Africa: UA1.47 billion (40.1%) West Africa UA595.8 million (16.2%) East Africa UA560.3 million (15.2%) Southern Africa UA492.8 (13.4%) Central Africa UA 234.6 million (6.4%) multinational operations 319.1 million.
In 2010, approvals from the non-concessional allocation totalled UA 2.58 billion for 59 operations (2009: UA5.6 billion for 84 operations), a decrease of 53.9%. However, approvals in 2010 exceeded by 42.8% those of 2008.
Project loans and private equity fell from UA 3.94 billion in 2009 to UA 2.3 billion in 2010, a decrease of 41.6%. Similarly, reform support loans fell from UA 1.52 billion in 2009 to UA 129 million in 2010.
Grants declined from UA 25.1 million in 2009 to UA 11 million. In regard to debt relief for low-income countries, the allocation of the Bank under the Enhanced HIPC Initiative increased by 27.7% from UA 112.8 million in 2009 to UA 144,100,000 in 2010.
The breakdown of approvals by financing instrument show that project loans and private equity accounted for 89%, debt relief 5.6%, reform support loans 5% and grants 0.4%.